leasing hay ground prices?

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machslammer

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Found 50 acres to lease...what's a good price for the year? Decent stand of grass. Prob make two rolls an acre. Maybe three.. And cut it twice a year prob.
 
machslammer":24wpzzn0 said:
Found 50 acres to lease...what's a good price for the year?

$2.00 pr acre is a good price... Will you get it for that ???? NO. I currently pay 35.00 an acre for pasture/hayfields I lease.
 
I usually do it on shares I give 1/3 to the landowner. Depending on the size rolls your talking about it may not be worth it at 2 rolls per acre I roll 4x5s and just gave up 100 acres because it doesn't produce any more than that I can buy hay cheaper with all costs considered. If you could get it cheap enough and improve the ground it may be worth something to you to do that, ive found on shares its not worth it for me to improve there ground only to loose it the next year(contracts could fix that) I do have a few places I get all the hay to keep it cleaned off so I don't mind putting a little into those places.
 
around here if people sell the hay standing pre bale it ranges from $5 $8 or $10 a bale.
 
I know what you all are saying about not being worth it. However, We(My Dad and I) own around 75 momma cows, 2 bulls, and 40 something calves. He owns the biggest majority on 1 farm that he feeds around 10-14 rolls a week in the winter time and I feed between 3-4 rolls a week in winter and then 1-2 rolls out all the time during the rest of the year. Usually on a Nov-March/April winter he feeds 300+ rolls and I feed 150 rolls year round. We like to always have extra and can always sell some if we have too. Not that we want to do that however. We like to stockpile hay so on those drought years, we know we will be ok and not pay $50 roll for it.

Currently we have:
1-26 acre field that produces 200 rolls a year with 3 cuttings (We own)
1-20 acre field that produces around 120 rolls a year with 3 cuttings (The guy gives it to us and next year he is putting on all the fertilize, re- seeding, and liming.)
1- 20 acre field that produces around 60 rolls a year 2 cuttings for our part (We split and get 2/3 for $125)
1- 4-5 acre Field that we cut and get for free and produces 20 rolls a year on 2 cuttings
1- 10 or so acre field that produces approx. 40 rolls for 2 cuttings ( We give the owner 4-5 rolls a cutting for his mules)

So, we only pay for 1 field actually now. This year we got ~ 440 rolls with a really good rain year and 3 cuttings on most of the land we cut. We want to have extra and the guy with this 50 acres is only a mile or so from where 1 of our other field is. The people that currently cut it don't cut it the way he wants and he has to go bushhog the rest of what they fail to cut. We think he will lease to us for around $500 for the year. Our next issue is the people that currently lease it, have not fertilized it in a few years and the guy wants us to fertilize it. I don't want to dump $2000 in it the first year for lease and fertilizer and only get it the one year, or he sells it like he has thought about doing..
Is there anyway to make something bonding for so many years in advance? Contract or something? I figured if we could get for 500 a year then it wouldn't be too bad. If we only cut it twice and get 2 rolls an acre then it would produce another 200 rolls a year and 300 if 3 cuttings. That would be 2.5 dollars a roll or $10 acre depending on how you look at it. That would be plenty for the cattle we have now, and be some extra on the rough years.
 
denvermartinfarms":qjx0cw4b said:
I bid some hay ground that a local city has, and I figure about 5$ a bale for what I think it will make.

If they didn't take the 500 for the first year plus we fertilize it, then I was gonna suggest to my dad we offer them 5$ roll for what it makes. Soure 1000 for 200 rolls is about what I figured anyhow.
 
machslammer":lujwk7wz said:
denvermartinfarms":lujwk7wz said:
I bid some hay ground that a local city has, and I figure about 5$ a bale for what I think it will make.

If they didn't take the 500 for the first year plus we fertilize it, then I was gonna suggest to my dad we offer them 5$ roll for what it makes. Soure 1000 for 200 rolls is about what I figured anyhow.

That's what I do on hay ground. I pay by the roll made. That's O.K. with me, as in a dry year I'm not in too deep. On pasture I pay per acre on a yearly basis and again, weather determines how many head it carries.

fitz
 
machslammer":2sc0cqal said:
denvermartinfarms":2sc0cqal said:
I bid some hay ground that a local city has, and I figure about 5$ a bale for what I think it will make.

If they didn't take the 500 for the first year plus we fertilize it, then I was gonna suggest to my dad we offer them 5$ roll for what it makes. Soure 1000 for 200 rolls is about what I figured anyhow.
IMO it's the most fair way to do it, your not paying for something your not getting, and the owner is getting paid for everything your taking. I never get to do any that way, i just guess what something will make and then give my price according.
 
denvermartinfarms":2w5vystf said:
I bid some hay ground that a local city has, and I figure about 5$ a bale for what I think it will make.

Why not convert that $5 per bale to a "per acre" price and give that figure to the landowner. Why should his lease be tied to how much hay you make? Aren't you sort of limiting yourself?
 
TexasBred":qmoqc97i said:
denvermartinfarms":qmoqc97i said:
I bid some hay ground that a local city has, and I figure about 5$ a bale for what I think it will make.

Why not convert that $5 per bale to a "per acre" price and give that figure to the landowner. Why should his lease be tied to how much hay you make? Aren't you sort of limiting yourself?
Because I am biding it for a city and they take sealed bids at a flat price, not a price "per" anything that could vary. I see what your saying though.
 
The only bad thing about this land is someone has been cutting it the past 3-4 years and never put any fertilizer on it.. Now the owner wants it fertilized by us. If we do that and pay 5$ a bale the price will be ~ 3000 a year to lease it for 50 acres. Cost ~ 1000 for the hay and 2000 to fertilize it plus time. If I did it that way, I would have to know that I was getting it more than 1 year so the fertilizer cost evened out..
 
denvermartinfarms":3o4hjuml said:
TexasBred":3o4hjuml said:
denvermartinfarms":3o4hjuml said:
I bid some hay ground that a local city has, and I figure about 5$ a bale for what I think it will make.

Why not convert that $5 per bale to a "per acre" price and give that figure to the landowner. Why should his lease be tied to how much hay you make? Aren't you sort of limiting yourself?
Because I am biding it for a city and they take sealed bids at a flat price, not a price "per" anything that could vary. I see what your saying though.

Well duhhhh. Can't you take it one more step and multiply the price per acre x the number of acres and give them a "falt price"??? :shock:
 
TexasBred":j3nh03f8 said:
Well duhhhh. Can't you take it one more step and multiply the price per acre x the number of acres and give them a "falt price"??? :shock:
I guess I could, but the bottom line is they take a total price, and they don't garuntee how many acres a field is, and the only way I have to know, is figure it after I've cut it by how fast I was going and how long it took. Once I know how many it was I can divide it for my self and know what I've paid per acre, but in all honesty I'm more interested in knowing what I have in a bale than a acre.
 
if that lease is going to cost you $3000 a yr.then you would be better off not leasing it an trying to buy 75 bales of hay a year.we havent put out any fert on our meadows in over 30yrs an this year we made 300 4 by 6 bales.an we still have 30acs to cut if weather premitts thatll make another 60 4 by 6 bales.but we run a 5 by 6 baler so thats close 200 5 by 6 bales.
 
denvermartinfarms":247o1e1n said:
TexasBred":247o1e1n said:
Well duhhhh. Can't you take it one more step and multiply the price per acre x the number of acres and give them a "falt price"??? :shock:
I guess I could, but the bottom line is they take a total price, and they don't garuntee how many acres a field is, and the only way I have to know, is figure it after I've cut it by how fast I was going and how long it took. Once I know how many it was I can divide it for my self and know what I've paid per acre, but in all honesty I'm more interested in knowing what I have in a bale than a acre.


Central Appraisal Office should have a plat of the place showing metes and bounds and acreage even though it's not taxed.
 
TexasBred":1x1rzxv0 said:
denvermartinfarms":1x1rzxv0 said:
TexasBred":1x1rzxv0 said:
Well duhhhh. Can't you take it one more step and multiply the price per acre x the number of acres and give them a "falt price"??? :shock:
I guess I could, but the bottom line is they take a total price, and they don't garuntee how many acres a field is, and the only way I have to know, is figure it after I've cut it by how fast I was going and how long it took. Once I know how many it was I can divide it for my self and know what I've paid per acre, but in all honesty I'm more interested in knowing what I have in a bale than a acre.


Central Appraisal Office should have a plat of the place showing metes and bounds and acreage even though it's not taxed.
Even with that it's hard to guess the size of a field down to say either 57 or 61 acres, because most places around here are not all open and even if they are it can't all be cut.
 
I would agree on a price assuming the fertility is good. Then, I would get soil tests and find out what is needed to get the ground back to recommendations. I would apply the cost of the fertilizer to the rent until it is paid off. If it takes more than one year, you will need to have a written agreement. In the agreement you could include a provision for when he sells it. If it is sold, he owes you the outstanding balance or the new buyer honors your agreement. We did this with a neighboring farm that hadn't been maintained for a while. They got their hay fields back in shape and we get extra hay.
 
Ask him what he wants to rent the hay ground, try and Jew him down some, if he don't like your offer then give him what he wants if its not totally outrageous. Hay ground is extremely rare around here and pasture is even harder to find. At least if you lock it in you have your foot in the door, and most landowners appreciate if you mow roadsides, fertilize, trim trees etc to keep land up. That will sometimes lower your next years rent payment and guarantee next years lease. Often times lowball offers offend people and they blow you off but if they see what you are willing to do to their land for upkeep they will see things your way the next year. My thoughts
 

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